Purpose

As freeholder, the Council is obliged to
arrange buildings insurance for its residential leaseholders under
the terms of the lease. The Long-Term Agreement (LTA) with existing
insurers expires on 31 March 2025. Therefore it was necessary to
re-tender the contract on behalf of leaseholders.

The award of contract has been made following a competitive tender
process - the supplier submitted the most economically advantageous
tender.

Content

1. The award of contract to Protector
Insurance to commence on 1st April 2025 for a period of 3 years
with an option to extend for up to 2 years. The total value of the
contract including any options to extend is £2,447,444.65
(including Insurance Premium Tax and excluding annual
increases).

2. Allow for increases in value over the life of the contract, for
the reasons set out below: Although the total value of the contract
based on the insurer’s quotation is stated as
£2,447,444.65, the value of the contract will increase each
year. This is because the sums insured will be subject to an annual
inflationary increase to ensure they remain adequate, which will in
turn result in a corresponding increase to the cost of the
insurance. Also, as tenants exercise their Right to Buy, additional
properties will be added to the insurance, which will result in
additional costs. As a result of a recent change to the Right to
Buy discount it is expected that there will be an increase in the
number of properties insured under the contract ahead of the
commencement of the contract resulting in increased costs.